Question

2) Record the journal entries for the following transactions:   (2 marks)

1. March 10: 500 units of raw materials were purchased on account at $4.00 per unit.
2. March 15: 250 units of raw materials were requisitioned at $4.50 per unit for production, Job 872.
3. March 25: 215 units of raw materials were requisitioned at $5.00 per unit for production, Job 879.

Date		Dr.	Cr.

Answer 1

2) Journal Entries
Date	Account Titles and Explanation	Debit	Credit
Mar. 10	Merchandise Inventory (500 units * $4 per unit)	$2,000
	Accounts Payable		$2,000
	(To record the purchase of merchandise on account)
Mar. 15	Work-in Process Inventory	$1,125
	Merchandise Inventory (250 units * $4.50 per unit)		$1,125
	(To record the materials requisitioned to production)
Mar. 25	Work-in Process Inventory	$1,075
	Merchandise Inventory (215 units * $5 per unit)		$1,075
	(To record the materials requisitioned to production)